Employee Performance Measures Used in Performance Management in Kcb Bank Limited

Abstract

Performance management is a systematic process by which the overall performance of an organization can be enhanced by improving the performance of individuals within team framework helps direct and motivate employees to maximize their efforts on behalf of the organization. This study aimed to determine employee performance measures used in performance management in KCB Bank Limited. The study was undertaken through a case study design. Primary data was collected using an interview guide which was administered to human resource manager of KCB Bank head office in Nairobi. The collected data was analyzed using content analysis technique. The study found that KCB Bank Limited measures employee performance by use of Balanced Score Card. The Balanced Scorecard has four perspectives which are considered key result areas. The perspectives are the financial, customer, internal business processes, and learning and growth perspective. Performance management was greatly affected by the employee performance measures. The financial perspective greatly influenced employee performance in that the higher the financial awareness by the employee the higher the performance. The study found that customer perspective has a great influence on employee performance from the frequent customer service reviews. High customer satisfaction was found to have ripple effect on the employee and eventually on the banks productivity. The study established that well defined internal business processes in terms of operation manuals and standard operating procedures ensured effective and efficient operations hence high employee performance. The bank has systematic employee learning and growth platforms which contribute positively towards the employee performance. It was concluded that KCB Bank Limited uses effective employee performance measures in their performance management. The limitations of the study included, bank‟s confidentiality policy and possible personal bias by the respondent. The study recommends that KCB bank should include other non-financial perspectives in assessing employee performance management. Further research work should be done in other industries such as manufacturing, merchandize retailing and profit and non-profit institutions to help drive the implementation and measurement of their strategies. Finally the study recommends that similar study be done on other banks in Kenya to find out whether the same results will be obtained.